Professional Documents
Culture Documents
Sheet
November 2016
Mission:
Together with our customers,
we are driven to make healthcare better.
At a 5.1%
5.8%
4.6%
6.1%
Glance 2.4%
2.9%
Stryker
MedTech Market 2
100+ 2013
Capital allocation
2014 2015
36 Share Repurchases:
$1.1B
straight years of
Continued share
sales growth buybacks over time
4,898 Emerging
Markets:
United
States:
72%
patents owned 7%
globally $9.9B
International
(Developed):
~33,000
21%
15.5% 2014
1 Organic revenue growth removes the impact of changes in foreign currency exchange rates and the first twelve months of acquisition sales
that affect the comparability and trend of sales.
2 Data Source: Company analysis of 16 peer companies.
3 Non-GAAP financial measure. These measures exclude intangible amortization from earnings in all periods (reference the reconciliation of
GAAP to non-GAAP in the Financial Summary).
4 Return on Invested Capital: adjusted net earnings less interest expenses net of tax / (average total debt and total equity)
2
Stryker’s
International growth
Stryker has a significant opportunity
core strategies
to grow international market share
through all of its current business
offerings. Stryker will accomplish
this by leveraging its broad product
Leading player in medtech portfolio and services, by continuing
to capture market share in key
Stryker is a broadly diversified medical technology company with no single
business in any segment representing more than 15 percent of total Stryker developed markets and building scale
revenue. This balanced diversity provides steady growth and enables the Company in emerging markets.
to pursue market opportunities in many promising areas.
Stryker has shown success in Europe,
Spine: 7% with a growth rate that now exceeds
Sustainability solutions: 2%
the market. This shift in execution
Medical: 8% Neurovascular: 5%
was driven primarily by initiation of
Endoscopy: 14% Neuro powered the Trans Atlantic Operating model
instruments: 3%
Instruments: 15% and the creation of the European
Craniomaxillofacial: 3%
regional headquarters. This growth
is sustainable, due to the under-
penetration relative to US share, in a
2015 Knees: 14% similar customer environment against
Sales the same competitors.
3
Orthopaedics
43% of total company sales
Financial and market information reflects 2015 results
Stryker offers a comprehensive portfolio Stryker offers a complete portfolio Stryker is a leading supplier of trauma
of solutions for primary and revision of implants and systems designed to and extremities products for the
hip arthroplasty. The Hip business provide surgeons with multiple options surgical treatment of bone fractures,
continues to drive the innovation in to treat patients with osteoarthritis. abnormalities and diseases. The
clinically successful product lines Since its launch in 2004, the Triathlon portfolio features a comprehensive
including Accolade, Exeter and X3. single-radius design has helped restore array of intramedullary nails,
Stryker utilizes SOMA, a proprietary function and relieve pain for over external fixation, locking plates, bone
analytics system to design and 1 million patients. Stryker’s knees are substitutes and joint solutions. Its
validate implants for optimized fit designed to work with the body to commitment to innovation, dedication
and performance. Stryker’s hips are promote a natural-like circular motion. and education benefits orthopaedic
designed to accommodate the wide The Company’s Triathlon Primary and trauma surgery by helping surgeons to
variety of surgical approaches used in Revision Knee implants and instruments enhance surgical treatment and serve
today’s evolving industry. allow orthopaedic surgeons to address individual patient needs.
a wide variety of clinical situations
that may arise during complex knee
surgeries.
4
er
O th
es
Kn
ti
ee
mi
s
ma & extre
Sales
$4.2B
u
Tra
Foot & ankle
Market Market Market Other joint H i ps
replacement
size position share
$1.2B #2 18%
currently the top-selling bone cement Accessories 2012 - US, Europe (France,
in the world,2 the Simplex family of Germany, Italy, UK), Japan, Brazil, India,
bone cements continue to provide China. Millennium Research Group,
clinically-backed fixation. December 2011.
5
MedSurg
39% of total company sales
Financial and market information reflects 2015 results
Stryker is a leader in creating products Stryker Medical partners with $0.3B #1 61%
that make surgery more efficient, healthcare providers by providing Medical device reprocessing and
reduce trauma and improve techniques. holistic solutions that focus on remanufacturing is good for the
The Company is known for a wide improving caregiver and patient environment and a hospital’s bottom
range of innovative operating room outcomes. Stryker Medical is line. Stryker’s Sustainability Solutions
products, from leading surgical power dedicated to innovation and thoughtful provides custom solutions to optimize
tools to personal protection and waste/ design, offering a broad portfolio of both of these goals.
fluid management. Stryker’s goal is products including but not limited
to improve the surgical and patient to: hospital beds and stretchers, As the trusted supplier of choice for
experience by developing products that surfaces, powered ambulance cots and roughly 3,000 U.S. Hospitals, including
are more reliable and less complicated fasteners, temperature management nearly all of US News & World Report’s
to use. solutions, interconnected technologies, “Best Hospitals,” our approach is
and hospital room furniture. The simple: grow a hospital’s financial and
Stryker’s computer assisted surgery Medical division of Stryker strives to environmental sustainability. In 2015,
technology focuses on procedural improve caregiver and patient safety, Sustainability Solutions’ reprocessing
simplification and workflow prevention, and efficiency, delivering programs helped customers save $262
flexibility, and enables surgeons to proven clinical/financial outcomes and million in supply costs and divert
accurately track, analyze and monitor confident care. 12.3 million pounds of waste from
instrumentation relative to a patient’s landfills. Together with our customers,
anatomy during surgical procedures to we can enhance patient care without
enhance patient outcomes. compromising quality or safety.
6
n a bili t y
st a i
Su olutions
s
l
ca
In
di
st r
Me
um
Sales
e n ts
$3.9B
Endoscopy
En
do
s co
py
As a technology leader in minimally Stryker focuses on optimizing efficiency Stryker offers a wide range of
invasive surgery, Stryker offers in operating rooms and surrounding innovative sports medicine implants,
comprehensive solutions to meet care environments. We leverage our instrumentation, resection and
the changing needs of the high-tech highly capable sales and service teams, biologic solutions. Our solutions focus
operating room. These solutions our configurable product portfolio, and on minimally invasive and open
combine voice activation, infrared a wide range of connectivity options to approaches to the shoulder, hip, knee
imaging and high-definition video help our customers design, equip, and and small joints. From our flexible
technology with a market leading data connect their ideal work spaces. OR technology and small peek implants
management system to offer a surgical integration systems, surgical video, to our “tie-able” tape suture and
environment designed to improve equipment management systems, optimal cutters and burs, Stryker’s
patient outcomes. surgical lights, and surgical tables are Sports Medicine business delivers a
the foundational elements of our iSuite comprehensive and innovative portfolio
solution. of products and business solutions to
help our customers excel, both clinically
and operationally.
7
Neurotechnology & Spine
18% of total company sales
Financial and market information reflects 2015 results
8
io -
an a c i a l
C r illo f
ax
M
Neustrument ed
S pi
s
ro power
Sales
ne
$1.8B
in
Spine
Ne
ur o
vascular
Market Market Market
size position share
$9.0B #4 8%
9
M&A
to enhance portfolio Patient Safety
Technologies
10
Core Business
Adjacency
Vertebral Compression
Fracture Portfolio from BD
SafeWire
Muka Physio-Control
Metal International
Physio-Control International Vertical Compression Portfolio addition expands our presence in the
global orthopaedic oncology market and
Physio-Control is a leading global This extensive, minimally invasive
offers the unique opportunity to impact
provider of professional emergency line of vertebral augmentation
a broader group of surgeons and their
medical response solutions that solutions includes, but is not limited
patients globally.
predict or intervene in life-threatening to, the AVAmax Plus mixing and
emergencies for public access, delivery system, AVAflex vertebral
in hospital and out-of-hospital balloon system, and their recent pre-
SafeWire
use. Physio-Control develops, commercial announced 11G AVAflex The SafeWire portfolio, including the
manufactures and markets monitors/ curved balloon and 13G AVAmax Y-Wire guidewire and Tiger Needle
defibrillators, automated external vertebral balloons. Family, is highly complementary to
defibrillators(AEDs), CPR-assist devices, Stryker’s spine product portfolio and is
data management solutions, accessories Stanmore Implants Worldwide aligned with the strategy of expanding
and disposables, technical support, and Stanmore Implants is an innovative product offerings for minimally-
implementation services. More than orthopaedic business focused on invasive spine surgery. The Y-Wire is
one million Physio-Control supported serving the needs of surgeons that designed to mitigate potential wire-
units are in use today in enterprise treat adult and juvenile orthopaedic based complications. With reduced
companies, on fire rescue rigs, oncology. Stanmore Implants’ portfolio surgical steps and technical ease, it
ambulances and hospital crash carts— includes both patient specific and also helps optimize workflow and
protecting thousands of communities off-the-shelf implant systems aimed reduce patient and surgeon exposure to
worldwide. The acquisition expands our at limb salvage. The acquisition of fluoroscopy. This acquisition increases
global presence into emergency medical Stanmore Implants aligns with our core Stryker’s competitive advantage as we
care market and offers the opportunity joint replacement business to provide broaden our spine surgery product line
to impact a greater group of patients differentiated technologies designed to and extend our customer base.
across the continuum of care. provide the most effective solutions for
orthopaedic oncology surgeons. This
11
Financial
summary
($ in millions, except per share amounts) % of sales Yr/yr change
Results of operations 2013 2014 2015 2013 2014 2015 2013 2014 2015
Net sales $9,021 $9,675 $9,946 100% 100% 100% 4.2% 7.3% 2.8%
Cost of sales 3,002 3,319 3,344 33% 34% 34% 7.0% 10.5% 0.8%
Gross profit 6,019 6,356 6,602 67% 66% 66% 2.9% 5.6% 3.9%
Research, development and 536 614 625 6% 6% 6% 13.8% 14.6% 1.8%
engineering expenses
Selling, general and 3,467 3,547 3,610 38% 37% 36% 3.7% 2.3% 1.8%
administrative expenses
Recall charges, net of 622 761 296 7% 8% 3% - - -
insurance proceeds
Intangible asset 138 188 210 2% 2% 2% 12.2% 36.2% 11.7%
amortization
Total operating expenses 4,763 5,110 4,741 53% 53% 48% 15.9% 7.3% -7.2%
Operating income 1,256 1,246 1,861 14% 13% 19% -27.9% -0.8% 49.4%
Other income (expense) (44) (86) (126) 0% -1% -1% 22.2% 95.5% 46.5%
Earnings before income taxes 1,212 1,160 1,735 13% 12% 17% -28.9% -4.3% 49.6%
Income taxes 206 645 296 2% 7% 3% -49.4% 213.1% -54.1%
Reported net earnings 1,006 515 1,439 11% 5% 14% -22.5% -48.8% 179.4%
Adjusted net earnings $1,714 $1,810 $1,949 19% 19% 20% 4.0% 5.6% 7.7%
Reconciliation of GAAP to Non-GAAP results 2013 2014 2015 2013 2014 2015
($ in millions)
12
Financial
summary
($ in millions)
13
Stryker leadership team
Kevin A. Lobo M. Kathryn Fink Katherine A. Owen
Chairman and Chief Executive Officer Vice President, Chief Human Vice President, Strategy and
Resources Officer Investor Relations
Yin C. Becker
Vice President, Communications and David K. Floyd Bijoy N. Sagar
Public Affairs Group President, Orthopaedics Vice President, Chief Information Officer
Glenn S. Boehnlein Michael D. Hutchinson Timothy J. Scannell
Vice President, Chief Financial Officer General Counsel Group President, MedSurg and
Neurotechnology
Lonny J. Carpenter Graham A. McLean
Group President, Global Quality President, Asia-Pacific
and Business Operations
Other officers
Dean H. Bergy Irene B. Corbe William J. Cymbaluk
Vice President, Corporate Secretary Vice President, Internal Audit Vice President, Corporate Regulatory
Affairs and Quality Assurance
William E. Berry, Jr. David G. Furgason
Vice President, Corporate Controller Vice President, Tax Bronwen R. Taylor
Vice President, Compliance and
Jeanne M. Blondia
Risk Management
Vice President, Finance and Treasurer
Division presidents
Businesses Bradford L. Saar Laurence F.I. Hipkin
Medical Eastern Europe, Middle East, Africa
William J. Huffnagle
Joint Replacement Spencer S. Stiles Hiroyuki Saeki
Instruments Japan
Xavier Berling
Trauma & Extremities Brian J. White Scott MacNair
Sustainability Solutions Canada
Bradley W. Paddock
Spine Regions M. Brent Scott
Asia
Mark H. Paul Maurice Ben-Mayor
Neurovascular South Pacific Fabrizio Signorin
Latin America
J. Andrew Pierce Stuart Silk
Endoscopy EMEA and Latin America
Additional information
Independent Registered Public Shareholders needing information Stock Listing
Accounting Firm regarding their certificates or dividends The Company’s common stock is traded
Ernst & Young LLP should contact: on the New York Stock Exchange under
Grand Rapids, Michigan American Stock Transfer & the symbol SYK.
Trust Company, LLC
Transfer Agent and Registrar Operations Center
American Stock Transfer & Trust 6201 15th Avenue, New York, NY 11219
Company, LLC 800 937 5449 | info@amstock.com
New York, New York
Stryker Corporation or its divisions or other corporate affiliated entities own, use or have applied for the following trademarks or service marks: Accolade,
AccuLIF, Aero, Cinchlock, ES2, Exeter, Gamma3, Gaymar, Hoffmann, ICONIX, Isolibrium, iSuite, iVAS, MAKOplasty, MAKO Surgical Corp., MDM, MEDPOR,
Memometal, NAV3i, Neptune, Orthovita, ReUnion, RIO, SafeWire, SDC3, SILVERGlide, Simplex, Small Bone Innovations, SmartLock, SOMA, Sonopet, STAR,
Stryker, Surpass, Target, Together with our customers, we are driven to make healthcare better., Trevo, Triathlon, Tritanium, Y-Wire, X3. All other trademarks are
trademarks of their respective owners or holders.
AVAflex and AVAmax are registered trademarks of Carefusion 2200, Inc.
14
Notes
15
Stryker Corporation
2825 Airview Boulevard
Kalamazoo, Michigan 49002
269 385 2600
CP-BR-12, 08-2016